Good Grains International, Inc.
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Lupin Pricing CriteriaSweet White Lupin is a formidable source of protein, which either governs or greatly influences the price of world food commodities. Its price is set in relation to the price of soybean meal, rather than the price of the soybean itself. This is due to the fact that the soybean's considerable oil content significantly influences the soybean market price. On a price per pound basis, Sweet White Lupin's market price is 85% of the soybean meal price. Thus, a futures price for Sweet White Lupin is locked in at 85% of the Chicago Board of Trade price of soybean meal on the date of execution of contract or purchase. Such pricing and formula have been utilized in private transactions and will be utilized by the International Lupin Exchange. As of January 1, 2001, the soybean meal market price as set by the Chicago Board of Trade, was $240 per U.S. Ton (2,000 lb.), $7.20 per bushel (60 lb.) and 12 cents per lb. The Sweet White Lupin Bean is part of a broad classification of world food crops known as "oilseeds," as defined in Tables 2 and 3 earlier in this Section. The world market's dominant oilseed, in terms of both protein content and world economic impact, is the soybean, hence, as a close competitor and viable alternative. Sweet White Lupin's price and comparative value is appropriately established. |
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